Strategy’s enterprise market-to-NAV (mNAV) ratio has crossed below 1 for the first time, as the company’s combined debt, preferred stock, and equity now exceed the value of its bitcoin treasury. MSTR shares closed Thursday at $82.31, a 52-week low, amid a sustained slide in both the stock and its preferred securities.

Strategy’s June 22 SEC filing confirms it holds 847,363 BTC. At Friday’s spot price near $60,500, that puts the bitcoin treasury at approximately $51.3 billion. The company’s enterprise value, comprising roughly $28.9 billion in equity market cap plus $6.75 billion in convertible debt and $15.5 billion in preferred stock, came to an estimated $51.2 billion, pushing the enterprise mNAV to approximately 0.99x.

[[image:chart-btc-90d.png alt=”Bitcoin price, last 90 days. BTC fell from a March high of roughly $81,700 to around $59,900 by late June, a decline of about 27%. Source: DefiLlama / CoinGecko.”]]

Accretion Channel Closes

Strategy’s model depends on issuing equity at a premium to NAV. When mNAV exceeds 1, each new share issued at the prevailing stock price buys more than a dollar of bitcoin, increasing bitcoin-per-share for existing holders. Strategy’s first-quarter earnings filing shows preferred dividend obligations reached $229.5 million in Q1 2026 alone, with the cumulative preferred stock outstanding growing rapidly as the company raised over $13.5 billion in preferred equity since early 2025.

Fortune wrote in January that a sub-1 mNAV would represent a crisis: “the reason for holding the stock vanishes, and no one will be likely to provide the company with more capital.” CEO Phong Le told a podcast in December that Strategy would consider selling bitcoin if the ratio fell below 1 and other capital sources ran dry.

STRC at Record Lows

STRC, Strategy’s variable-rate Series A perpetual preferred, has fallen to around $75, about 25% below its $100 par value, per market data. Strategy’s June 22 SEC filing shows the company’s USD Reserve stood at $1.4 billion as of June 21, 2026, a management-designated fund intended to cover preferred dividends and debt interest.

The Defiant has tracked the STRC decline through record-low territory, a Rosen Law Firm securities probe, and MSTR’s break below $100 earlier this week.

For institutional observers of the corporate bitcoin treasury model, a sub-1 enterprise mNAV severs the equity-accretion channel that made the approach replicable. Other bitcoin treasury companies have faced similar compression: CoinGecko’s treasury tracker shows Metaplanet’s basic mNAV at 0.84x as of late June.